Published on 6/26/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.01 million contingent income barrier autocallables on stocks
By Sarah Lizee
Olympia, Wash., June 26 – HSBC USA Inc. priced $2.01 million of autocallable contingent income barrier notes due June 28, 2021 linked to the least performing of the common stocks of Goldman Sachs Group, Inc., Nvidia Corp. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 20.25% if each stock closes at or above its trigger level, 70% of its initial share price, on the observation date for that period.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Goldman Sachs Group, Inc., Nvidia Corp. and Microsoft Corp.
|
| Amount: | $2,006,000
|
| Maturity: | June 28, 2021
|
| Coupon: | 20.25%, payable quarterly if each stock closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call observation date after six months
|
| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
|
| Initial level: | $195.94 for Goldman, $151.76 for Nvidia and $136.97 for Microsoft
|
| Trigger/barrier level: | $137.158 for Goldman, $106.232 for Nvidia and $95.879 for Microsoft, 70% of initial price
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40436B493
|
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